VC-backed stocks reach their highest mark of the year

The Thomson Reuters’ Post-Venture Capital Index (PVCI) began the third quarter on a positive note, rising 71.27 points to end July at 977.49.

The July 29 mark was the highest month-ending total this year for the PVCI.

It also measured as a rise of 7.8 percent drop from the month before when the PVCI ended Q2 at 906.22.

At the end of July, the PVCI was comprised of 421 companies. Of the stocks tracked, 303 advanced in value during the month while 118 declined. The number of companies in the index rises and falls, depending on new issues or as the companies fold or are acquired. Also, companies remain in the index for only 10 years.

A total of 78 of the advancing stocks in July were in computer software and services and 54 were biotech. The largest group of decliners was also in the biotech sector, with 28.

Facebook continued to rank as the company with top market value, as of July 29.

Downloadable Data: PVCI as of July 29, 2016

What is the PVCI?

The PVCI measures the performance of public stocks, tracking VC-backed companies beginning at the time when they go public.

Companies remain in the index for 10 years from the IPO launch date or until price data is no longer available, they are acquired or removed from a publicly traded exchange.

The index is calculated daily and does not take into account dividends. It began in January 1986 with an initialized index value of 100.

Monthly Index (July 2015 – July 2016)PVCI vs. Nasdaq and S&P500